Embedded FinTech Startup Colendi Acquires Blockchain Firm SETL

Multifunctional banking as a service (BaaS) platform Colendi is acquiring blockchain settlements and payments provider SETL for undisclosed terms, according to media reports on Friday (June 24). The move is intended to help bolster Colendi’s Web3 offerings.

As part of the deal, Colendi gains SETL’s intellectual property (IP) and will have access to its industry expertise. Colendi is working to develop a new public blockchain infrastructure to host native tokens and smart contracts, Tech.eu reported.

Co-founded in 2015 in London by President Peter Randall and Chief Engineer Anthony Culligan, SETL aims to help financial services companies rethink business models and strategies, improve operational efficiency and adapt to new and evolving regulations.

“Many of our clients are looking for a route from internal private blockchains to a public shared environment. This will provide that path,” Culligan told Tech.eu.

See also: Why Every Bank Can Be, and Should Be, a Banking-as-a-Service Company

Headquartered in Istanbul, Colendi was co-founded in 2017 by CEO Mihriban Ersin Tekmen and Bulent Tekmen and strives to democratize banking services for consumers, merchants and financial institutions.

The company has more than 10 million users and wants to bring financial services to people without bank accounts and those who cannot get loans, according to Colendi’s website.

Colendi offers a digital wallet and uses a decentralized credit scoring engine for its buy now pay later (BNPL) payment partners in Turkey, which include PayCell, Ledger Insights reported.

The startup closed a $38 million Series A funding round last September at a $158 million valuation, per reports.

Read more: Cross River Bank on How Embedded Finance Can Accelerate Payments in Niche Markets

Gaming, messaging, investments and the development of additional decentralized applications (dApps) are in the works by Colendi. The company also has immediate plans to launch a native network token, Tech.eu reported.

The blockchain Colendi is developing will natively support popular formats for NFTs and tokens and will also support cross-chain connectivity.

Related: Banking as a Service Key to Fast-Tracking Embedded Finance for FIs